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Phantasy [73]
3 years ago
13

On March 1, 2022, Wildhorse Company acquired real estate, on which it planned to construct a small office building, by paying $9

8,000 in cash. An old warehouse on the property was demolished at a cost of $11,000; the salvaged materials were sold for $3,100. Additional expenditures before construction began included $2,000 attorney's fee for work concerning the land purchase, $6,300 real estate broker's fee, $10,800 architect's fee, and $18,200 to put in driveways and a parking lot.
Determine the amount to be reported as the cost of the land.
Business
1 answer:
Nitella [24]3 years ago
4 0

Answer:

The amount to be reported as the cost of the land is $ 114,200

Explanation:

Cash paid for the land = $ 98,000

Net cost of demolishing old ware house = $ 11,000 - $ 3,100 = $ 7,900

Attorney's fee = $2,000

Real estate broker's fee = $ 6,300

Total cost of the land = Cash paid for the land + Net cost of demolishing old ware house + Attorney's fee + Real estate broker's fee

= $98,000 + $ 7,900 + $2,000 + $ 6,300

= $ 114,200

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The Nash Equilibrium is the strategy where both are making the best that they can given the strategy of the other player and deviating from it will give them less pay out.

The dominant strategy therefore is for RAPHAEL to choose LEFT and for SUSAN to choose RIGHT.

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